Question

the 2019 integrated annual report is the fourth for leandlease. explain what is an integrated report, and how lendlease is managing and measuring value.
what is your opinion of the sustainability achievements of lendlease?
word limit_750

Answer 1

1.The report is
a consolidation of the Annual Report,
Directors' Report & Financial Statements
and the Securityholder Review. This
integrated report provides a simple and
clear way for us to share the value
creation story of Lendlease.

2.Financial Strength
Lendlease delivered a solid performance
for the financial year ended 30 June 2016,
with Profit after Tax of $698.2 million, up
from $618.6 million in the financial year
ended 30 June 2015. The Development
segment was the clear standout with
residential and commercial development
performing strongly.
Securityholders will receive a final
distribution of 30.0 cents per security,
taking the full year distribution to
60.0 cents per security. The payout ratio
for the year was 50 per cent, within the
Board’s target range of 40 to 60 per cent
of earnings.
Lendlease enters FY17 in a very strong
financial position. As at 30 June 2016,
we had cash and cash equivalents of
$1,008.4 million, gearing of 6.5 per cent
and undrawn capacity of $2,172.6 million.
The resilience of the Lendlease balance
sheet, including high levels of liquidity,
combined with access to third party
capital, provides the financial flexibility
to fund our development pipeline and
capitalise on potential growth
opportunities.
Safety
For the third consecutive year there were
no corporate reportable work related
fatalities on Lendlease controlled
operations. This significant milestone was
supported by a 37 per cent reduction in
the critical incident1
frequency rate
against the prior financial year.
We are committed to constantly
challenging our health and safety
performance so that it aligns with the
Lendlease strategy and remains effective
across the sectors and markets in which
we operate.
Our enhanced Global Minimum
Requirements Framework sets
parameters on the control of key health
and safety risk events faced by our
business and has placed a focus on front
end planning so that safety begins well
before a project commences, irrespective
of the working environment.